Long-Only Price Grid Trading with Geometric or Arithmetic Levels

Summary

This grid strategy divides a fixed price range into configurable levels, spaced either geometrically or arithmetically. It buys a slot when the closing price crosses downward through its level and closes that slot when price crosses upward through the next level. Each slot receives an equal share of the configured investment, and the script tracks whether each level is occupied.

The design is long-only and has no stop loss or trailing exit. Its stated risk constraints are the selected range and bounded allocation, which means a prolonged decline below the lower boundary can leave positions open and expose the strategy to losses. The script includes a date filter, trading costs in its strategy settings, visualization, and webhook alerts, but the supplied material gives no backtest results. Its fixed bounds require ongoing suitability checks, and actual alert execution may differ from the close-based simulation.

Key ideas

• The strategy buys on downward close-to-close crossings of grid levels and sells at the next higher level.
• Grid spacing can be geometric or arithmetic across user-defined upper and lower bounds.
• Investment is allocated across slots, with the script tracking each slot’s position state.
• The design has no stop loss, so fixed bounds and allocation do not prevent losses when price falls below the range.
• The document provides configurable logic but no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.